New Nuclear Generation: Ratings Pressure Increasing

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...Moody's is considering taking a more negative view for those issuers seeking to build new nuclear power plants Rationale is premised on a material increase in business and operating risk Longer-term value proposition appears intact, and, once operating, nuclear plants are viewed favorably due to their economics and no-carbon emission footprint Historically, most nuclear-building utilities suffered ratings downgrades-- and sometimes several--while building these facilities Political and policy conditions are spurring applications for new nuclear power generation for the first time in years Nevertheless, most utilities now seeking to build nuclear generation do not appear to be adjusting their financial policies, a credit negative First federal approvals are at least two years away, and economic, political and policy equations could easily change before then Progress continues slowly on Federal Loan Guarantees, which will provide a lower-cost source of funding but will only modestly mitigate...

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Moody's Global Credit Research—Moody's Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations. Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Ratings also create efficiencies in fixed-income markets and similar obligations, such as insurance and derivatives, by providing reliable, credible, and independent assessments of credit risk. For issuers, Moody's services increase market liquidity and may reduce transaction costs.

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